Securities code: 000613 200613 securities abbreviation: * ST Donghai a * ST Donghai B Announcement No.: 2022-003 Hainan Dadonghai Tourism Centre (Holdings) Co.Ltd(000613)
Announcement on the reply to the letter of concern of Shenzhen Stock Exchange
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Hainan Dadonghai Tourism Centre (Holdings) Co.Ltd(000613) (hereinafter referred to as "the company" or "Dadonghai") received the notice on Hainan Dadonghai Tourism Centre (Holdings) Co.Ltd(000613) issued by Shenzhen Stock Exchange on January 27, 2022 (company Department notice [2022] No. 57) (hereinafter referred to as "notice"). After receiving the letter of concern, the company attached great importance to it, immediately organized relevant departments and annual audit accounting firms to implement the problems involved in the letter of concern one by one, and replied to Shenzhen Stock Exchange on February 7, 2022. Now the relevant contents are announced as follows:
1、 According to the third quarterly report of 2021, as of September 30, 2021, your company has realized a net profit attributable to the parent company of 2.7896 million yuan and a net profit attributable to the parent company of 2.4394 million yuan after deduction. According to the performance forecast for 2021, your company is expected to realize a net profit attributable to the parent company of 2.7 million yuan to 3.1 million yuan in 2021, and a net profit attributable to the parent company of 1.5 million yuan to 1.9 million yuan after deducting non profits; It is estimated that from October 1 to December 31, 2021, the loss will be about 90000 yuan to the profit will be about 310000 yuan. Please explain in detail the reasons for the decline in profits in the fourth quarter in combination with the characteristics of the industry in your region and the operation of your company in the fourth quarter.
Company reply:
1. The comparative analysis of the company's operation in the fourth quarter of 2021, 2020 and 2019 is as follows:
Compared with the fourth quarter of 2020 and the fourth quarter of 2019
project
Increase or decrease from 2021 to 2020% increase or decrease from 2021 to 2019% 1 Houses (rooms) 22540 22356 0.82 22540 18032 25.002 Sales (room) 16772 15359 9.20 16772 16107 4.133 Occupancy rate (%) 74.41 68.70 8.31 74.41 87.98 -15.424 Average house price (yuan) 373.55 402.72 -7.24 373.55 400.41 -6.71 operating income of guest room (10000 yuan) 591.06 583.51 1.29 591.06 608.44 -2.86
Note: (1) compared with the fourth quarter of 2020, the company's house supply increased slightly in the fourth quarter of 2021, the occupancy rate also increased, the sales volume of guest rooms increased, but the average house price decreased slightly, and the total operating revenue of guest rooms was basically the same. The main reason is that in the fourth quarter of 2021, there were relatively many repeated small situations of the epidemic, and the hotel industry had obvious price cutting competition with each other. In order to improve the occupancy rate, the company reduced the hotel price accordingly.
(2) Compared with the fourth quarter of 2019, the company's housing supply increased by 25.00% in the fourth quarter of 2021, the sales volume of guest rooms was basically flat, the occupancy rate decreased seriously, the average house price also decreased, and the total operating revenue of guest rooms decreased slightly. The main reason is that compared with 2019, the hotel has fully completed the decoration and transformation in the fourth quarter of 2021, and the hotel supply has increased greatly. However, due to the small situation of the epidemic for many times, the price promotion has to be greatly reduced, resulting in the decline of occupancy rate and house price.
2. Combined with the operating characteristics of the hotel industry in the region where the company is located, explain the reasons for the decline of the company's profit in the fourth quarter of 2021
As a four-star hotel located in the Dadonghai Tourism Center of Sanya, due to its regional location and tropical climate, coupled with the factors of the Spring Festival holiday, the first quarter of each year is the peak season of the company's business season, with the highest business performance in the whole year, the second quarter and the third quarter are the off-season in the whole year, the third quarter has the traditional summer peak season for students, and the second quarter has the lowest business performance in the whole year, The third quarter is followed by the National Day holiday in the fourth quarter. Coupled with the climate advantages in November and December relative to the north, it is a peak season, and the business performance is the second highest in the whole year. Under normal circumstances, the operating performance in the first quarter is the highest, followed by that in the fourth quarter. The profits in the second and third quarters are behind, and there is little difference between the second and third quarters.
Covid-19 epidemic occurred repeatedly in many places in China in 2021, disrupting the low and peak seasons of Sanya hotel industry. From the end of January to the middle of February 2021, the epidemic situation occurred repeatedly, and local governments called for the local new year. January and February, which were originally the peak season, became tepid. From March to July, with the launch of covid-19 pneumonia vaccine and the increase of vaccinated personnel, the covid-19 pneumonia epidemic in China was well controlled, and the hotel industry in Sanya was on the contrary. Generally speaking, it is a little abnormal before and after the Spring Festival holiday in 2021. The market from March to July is basically normal. During the period from August to December, due to the impact of the epidemic in Nanjing, Xi'an, Fujian, Henan and other places, the tourism market has been repeated for many times. In the fourth quarter, the market did not form the peak season of the previous year.
From the above comparison, it can also be seen that in the fourth quarter of 2021, compared with the fourth quarter of 2019 without the impact of the epidemic, under the condition that the housing supply increased by 25.00%, the total operating revenue of guest rooms still decreased by 2.86%, and the revenue growth was far from expected. At the same time, the decoration and transformation increased depreciation and amortization, resulting in a decline in the profit in the fourth quarter of 2021.
Verification opinions of annual audit accountant:
According to the proposed audit plan, our audit of the company's 2021 annual report is still in progress. In response to the above contents replied by the company in this letter of concern, we have implemented the following verification procedures:
1. Obtain and check the occupancy rate, average room price and depreciation and amortization of related assets of the company in the fourth quarter of recent three years;
2. Ask relevant personnel of the company to understand the specific reasons for the relative decline of the company's performance in the fourth quarter of 2021.
Based on the inspection procedures implemented, we found no significant inconsistency between the above Reply of the company and the information obtained from the 2021 annual report audit. The decline of the company's profit in the fourth quarter was mainly due to the impact of epidemic factors.
2、 In 2020, your company realized a net profit attributable to the parent company of -11.5679 million yuan, and the net profit attributable to the parent company after deducting non profits
-12.135 million yuan. In 2021, your company is expected to realize a net profit attributable to the parent company of 2.7 million yuan to 3.1 million yuan, with a year-on-year increase of 123.34% - 126.80%; The net profit attributable to the parent company after deducting non profits is 1.5 million yuan to 1.9 million yuan; A year-on-year increase of 112.36% - 115.66%. Please explain the rationality of the increase of net profit in 2021 in combination with the changes and reasons of the equivalence ratio of operating costs and period expenses, and whether there is undercounting of costs and expenses.
Company reply:
(I) the comparative analysis of the company's operating costs and period expenses in 2021, 2020 and 2019 is as follows:
Unit: 10000 yuan
Compare 2020 to 2019
Project 2021
Increase or decrease in 2020% increase or decrease in 2019% 1 Operating cost 1880.00 1276.85 47.24 1108.28 69.63 of which: room cost 1370.00 1130.96 21.14 921.85 48.61 of which: depreciation and amortization 850.00 572.39 48.50 361.87 134.89 catering cost 200.00 98.30 103.46 138.34 44.57 other business costs 130.00 47.45 173.97 47.45 173.97 involve deducting costs 180.00
2、 Period expenses 1400.00 1431.56 -2.20 1520.31 -7.91, including salary expenses 970.00 934.82 3.76 1045.47 -7.22 material expenses 60.00 57.11 5.06 87.75 -31.62 energy expenses 35.00 26.49 32.13 25.40 37.80 promotion expenses 55.00 86.84 -36.67 73.21 -24.87 other expenses 75.00 106.83 -29.80 130.56 -42.56 depreciation and amortization 180.00 175.93 2.31 175.50 2.56 financial expenses 25 00 43.54 -42.58 -17.58 -242.213, total cost 3280 2708.41 21.10 2628.59 24.784, number of employees 118 120 -1.67 133 -11.28
(II) changes and reasons of the company's operating cost and period expense equivalence ratio
1. The unaudited operating cost of the company in 2021 was 18.8 million yuan, a year-on-year increase of 47.20%. Of which:
(1) The cost of guest rooms was 13.7 million yuan, an increase of 21.14% year-on-year in 2020. The depreciation and amortization was 8.5 million yuan, a year-on-year increase of 48.50%.
(2) The catering cost was 2 million yuan, a year-on-year increase of 103.46% in 2020, mainly due to the growth of catering revenue.
(3) The cost of other businesses was 1.3 million yuan, an increase of 173.97% year-on-year in 2020, mainly due to the increase in the sales of moon cakes in hotels during the Mid Autumn Festival.
(4) the cost of deducting costs from non profit and loss is 1 million 800 thousand yuan, mainly for Baijiu selling cost.
2. The unaudited period expense of the company in 2021 was 14 million yuan, a year-on-year decrease of 2.2%, including:
(1) Salary expenses were 9.7 million yuan, a year-on-year increase of 3.76% in 2020.
(2) The cost of materials was 600000 yuan, a year-on-year increase of 5.06%.
(3) Energy expenses were 350000 yuan, a year-on-year increase of 32.13%, mainly due to the growth of catering business. (4) The promotion expenses were 550000 yuan, a year-on-year decrease of 36.67%, mainly due to the reduction of reception expenses. (5) Other classes
